Prudential Annuities Announces Highest Daily Lifetime SevenSM with Lifetime Income Accelerator; Innovative Benefit Doubles Guaranteed Annual Retirement Income Based on Health Conditions

Copyright 2008 Business Wire, Inc. Business Wire

July 23, 2008 Wednesday 2:10 PM GMT

DISTRIBUTION: Business Editors

LENGTH: 1179 words

HEADLINE: Prudential Annuities Announces Highest Daily Lifetime SevenSM with Lifetime Income Accelerator; Innovative Benefit Doubles Guaranteed Annual Retirement Income Based on Health Conditions

DATELINE: NEWARK, N.J.

Prudential Annuities, the domestic annuity business for Prudential Financial, Inc. (NYSE:PRU) today announced the latest innovation in its award-winning1array of variable annuity optional living benefits, Highest Daily Lifetime Seven with Lifetime Income Accelerator. This flexible income option can double investors' annual income amount should certain health conditions be present.

HD Lifetime Seven with Lifetime Income Accelerator is the first benefit of its kind to provide investors with the flexibility to increase their annual income regardless of whether they are still living at home or in a qualified nursing facility. Investors can qualify for double their guaranteed annual income if they are either unable to perform two or more activities of daily living, or confined to a qualified nursing facility.

Prudential Annuities' newest guaranteed lifetime income option is only available on variable annuities with HD Lifetime Seven, the benefit that locks in an investor's investment gains every day to maximize income.

"Rising health-care costs are a real concern for individuals in or approaching The Retirement Red Zone®-the five years before and after retirement," says David Odenath, President of Prudential Annuities. "Our newest income benefit provides investors with the flexibility to double their annual income amount, and most importantly, help them protect their quality of life." HD Lifetime Seven with Lifetime Income Accelerator was developed to help manage changing needs in retirement. It is not long-term care insurance and should not be purchased in place of long-term care insurance.

The Lifetime Income Accelerator benefit is available on HD Lifetime Seven, a variable annuity optional living benefit that offers a protected withdrawal value based on 7% annual compounded growth on the highest daily account value (for the first 10 years, or until first withdrawal, whichever is sooner) which provides for daily opportunities to capture greater lifetime income of 5%-8% of their protected withdrawal value, depending on age at first withdrawal, guaranteed for life. Annuitization is not required.

A waiting period of three years following the initial benefit election applies before accelerated income can begin. Additionally, a 120-day elimination period applies; the waiting period and elimination period may run concurrently. The total annual cost for HD Lifetime Seven with Lifetime Income Accelerator is 0.95%, which is assessed quarterly against the Protected Withdrawal Value (adjusted for withdrawals and premiums) on the last day of the benefit quarter.

"Our newest innovation was developed in response to Americans' growing concern about their retirement income security, and gives financial professionals a new tool to help their clients secure additional income when they need it most," says June Amori, Senior Vice President of Marketing for Prudential Annuities. "For investors interested in growing and protecting their retirement income, Prudential Annuities can offer a highest daily strategy that addresses their needs."

Since their debut in January of 2008, Prudential Annuities' highest daily optional living benefits, Highest Daily Lifetime Seven and Spousal Highest Daily Lifetime Seven, have contributed to Prudential demonstrating the strongest growth rate in the first quarter of 2008 of the top 10 Advisor-sold variable annuity writers. Source: VARDs, Q1 2008 report.

Reflecting the popularity of these features, the overall election rate for optional living benefits on Prudential Annuities' variable annuity sales for the quarter ended March 31, 2008 was 81%. Total account values with guaranteed withdrawal benefits for life at the end of that period was $16.9 billion.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $631 billion of assets under management as of March 31, 2008, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company's well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visithttp://www.news.prudential.com/.

Variable annuities are long-term investments designed for retirement purposes. Investment return and principal value of an investment will fluctuate so that an investor's unit values, when redeemed, may be worth more or less than their original cost. Withdrawals or surrenders may be subject to surrender charges. Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 591/2, may be subject to an additional 10% federal income tax penalty. Withdrawals, for tax purposes, are deemed to be gains out first. Withdrawals can reduce the living benefit, death benefit and account value.

Optional living and death benefits may not be available in every state and may not be elected in conjunction with certain optional benefits. The fees are in addition to fees and charges associated with the basic annuity. See the prospectus for more detailed information.

Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details.

Guarantees are backed by the claims-paying ability of the issuing company.

Highest Daily Lifetime Seven P-RID-HD7 (1/08).

Investors should consider the contract and underlying portfolios' investment objectives, risks, charges and expenses carefully before investing. This and other important information are contained in the prospectuses, which can be obtained from your financial professional. You should read the prospectuses carefully before investing.

Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ, or by Prudential Annuities Life Assurance Corporation, Shelton, CT. All are distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Wachovia Corporation is the majority owner and Prudential Financial, indirectly through subsidiaries, is a minority owner of Wachovia Securities, LLC. Prudential Annuities is a business unit of Prudential Financial.

Prudential Financial, the Rock logo, and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.

1Boomer Market Advisor Reader's Choice Awards, 2005, 2006, 2007.

IFS-A150804 Ed. 7/2008 CONTACT: Prudential Financial, Inc.Lisa M. Bennett, 973-802-2894orAlicia Rodgers-Alston, 973-802-4446 http://www.businesswire.com

LOAD-DATE: July 23, 2008